The Walt Disney Company reported mixed financial results for its fiscal third quarter ended June 27, surpassing analyst expectations for earnings while falling slightly short on revenue projections.
The parks and experiences division continued to drive growth, with revenue climbing 10% year over year to $9.97 billion. Domestic park attendance increased 3% and per capita spending rose 4%, according to Chief Financial Officer Hugh Johnston. Walt Disney World in Orlando, Florida experienced particularly strong attendance figures. The company noted its performance compared favorably to competitors, with other industry players reporting softer traffic amid consumer headwinds.
The entertainment streaming segment, primarily comprised of Disney+ and Hulu, generated revenue of $5.53 billion, up 11% year over year. Growth was fueled by increased subscriber numbers, price adjustments, and higher advertising revenue. The broader entertainment segment, which includes streaming, traditional television, and theatrical releases, saw revenue rise 6% to $11.35 billion. The theatrical release “Toy Story 5” contributed significantly, having crossed $1 billion at the global box office.
Total quarterly revenue reached $25.25 billion, representing 7% growth year over year. Reported net income for the quarter was $2.64 billion, or $1.51 per share, though adjusted earnings per share came to $2.06, up from $1.61 in the comparable prior year period. The sports segment, anchored by ESPN, generated $4.5 billion in revenue, up 4%, benefiting from subscription fees, affiliate revenues, and advertising. The company noted exceptional viewership growth from NBA and NHL postseason programming.
Disney announced plans to increase share repurchases to at least $9 billion in fiscal 2026, up from a prior target of $8 billion, following proceeds from the sale of its stake in A+E Global Media. The company also disclosed a licensing agreement with TikTok to feature curated Disney content on the platform, and said it would reorganize its consumer products business starting in fiscal 2027. Stock price rose more than 3% following the announcement.
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